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British Christmas 'paid for with credit'

Nearly half of Britons paid for their Christmas on credit this year, research from a consumer group found. Credit: Martin Keene/PA Wire/Press Association Images

Nearly half of Britons paid for their Christmas on credit this year, research from a consumer group has found.

Which? said 46% of people it surveyed used credit cards, overdrafts, store cards or payday loans to cover Christmas spending this year, while more than a third (36%) dipped into their savings.

Those who used their savings took out an average of £380 while those who used credit to cover Christmas costs typically borrowed £301.

Which? director Richard Lloyd, said: "Most of us like to splash out on family and friends at this time of year so the news that millions of people have drastically cut back on Christmas spending or taken out loans to cover Christmas costs shows just how squeezed household budgets are right now.

"It also shows how far we are from a consumer spending-led economic recovery."